Group 1: Report Core View - "Sakata Method" is a K - line analysis system founded by Homma Munehisa, a rice merchant in the Edo period of Japan, and it has remained a classic trading theory [2]. - The method has expanded from the rice market to various trading fields such as stocks, futures, and foreign exchange, and is still useful today [2]. - "Sakata Method" follows four principles: trend - first, emphasis on stop - loss and take - profit, focus on mindset management, and reasonable fund allocation [3]. - A case shows that an investor named Kobayashi successfully used "Sakata Method" to gain profits in the crude oil futures market [3][4]. - "Sakata Method" helps investors manage risks, pursue maximum returns, and avoid emotional decisions, and is worthy of in - depth study [4]. Group 2: Summary by Related Information Origin and Development of "Sakata Method" - "Sakata Method" was created by Homma Munehisa in the Edo period when Japan's commodity market was active, and it gradually formed a complete trading system [2]. - Over time, it has spread to multiple trading fields and combined with modern technical analysis tools [2]. Principles of "Sakata Method" - Trend - first: Identify market trends (up, down, or consolidation) through specific K - line combinations like "Three Soldiers" and "Three Rivers" [3]. - Emphasis on stop - loss and take - profit: Set clear stop - loss and take - profit levels and execute them promptly [3]. - Mindset management: Keep calm and rational during trading [3]. - Reasonable fund allocation: Avoid over - concentrating investment in a single variety or direction [3]. Case Study - In October 2022, due to geopolitical tensions in the Middle East, Kobayashi identified an "Ascending Three Methods" pattern in the crude oil market using "Sakata Method" [3]. - Kobayashi bought crude oil futures contracts, set stop - loss and take - profit levels, adopted a batch - building strategy, adjusted the stop - loss level during the holding period, and finally achieved the expected profit [3].